Canada Goose is a Canadian luxury outerwear company known for its down jackets. The company was founded in 1957 and has grown to become one of the world’s leading makers of extreme weather outerwear. In recent years, Canada Goose has expanded rapidly as its popularity has soared. This has led many to wonder about the company’s business structure and whether it is a publicly listed company.
Is Canada Goose publicly traded?
Yes, Canada Goose is a publicly traded company. The company had its initial public offering (IPO) on the Toronto Stock Exchange and New York Stock Exchange in March 2017. Canada Goose trades under the stock ticker “GOOS” on both exchanges.
Prior to its IPO, Canada Goose was a private company owned by investment firm Bain Capital. However, Bain decided to take the company public in order to allow early investors to realize returns and to provide growth funding for expansion. The IPO raised around CAD $340 million for the company.
Canada Goose’s stock performance since IPO
Since its IPO, Canada Goose’s stock has seen strong growth driven by the brand’s surging international popularity. In the first day of trading alone, GOOS shares rose over 25% from the IPO price. The stock went on to more than double in the first year of trading.
Here is a table highlighting key stock milestones for Canada Goose since its IPO:
Date | Stock Price Milestone |
---|---|
March 2017 | IPO at CAD $17 per share |
November 2017 | First time closing over CAD $30 |
February 2018 | First time closing over CAD $40 |
April 2018 | First time closing over CAD $50 |
November 2018 | First time closing over CAD $60 |
Canada Goose’s stock price has pulled back some from its 2018 highs but still trades at around 2-3x its IPO valuation. This demonstrates strong investor interest in the brand and confidence in its growth trajectory.
Canada Goose’s business growth
Canada Goose’s blockbuster IPO and stock growth has been fueled by the brand’s surging popularity and financial performance. In the fiscal year ended March 31, 2022, Canada Goose generated over CAD $1.1 billion in annual revenue, up over 40% from the prior year. The company reached CAD $1 billion in annual sales for the first time in 2021.
Other key milestones demonstrating Canada Goose’s rapid business expansion include:
- Annual revenue has grown at a 35% CAGR since 2015
- The company has expanded from selling mainly in Canada to having extensive operations across Europe, the U.S., and Asia
- The number of company-owned retail stores has increased from 5 in 2015 to over 30 today
- Adjusted EBITDA margin has increased from 14% in 2015 to over 31% in 2022
Canada Goose’s growth has been driven by strong consumer demand globally for its luxury parkas and jackets. The brand has developed an aura of exclusivity and premium quality that resonates across geographies. This has enabled Canada Goose to expand abroad while maintaining its pricing power and margins.
Recent company developments
Canada Goose continues to be on a strong growth trajectory. Some recent developments for the company include:
- Opening new retail stores across Asia, including locations in Singapore, Japan, and China
- Launching new products and collaborations, such as lightweight jackets and collaborations with high-profile brands like the NBA
- Expanding categories such as knitwear, fleece, and footwear to complement its core jacket business
- Increasing production capacity to meet growing global demand
- Committing to sustainability initiatives like using recycled materials and fur-free designs
CEO Dani Reiss has stated that he sees ample opportunity for Canada Goose to grow its annual sales to CAD $5 billion in the long run. The company aims to achieve this through further expansion in Asia, growing its DTC channel, and entering new product categories and collaborations.
Canada Goose investor metrics
Here are some key metrics for investors to know regarding Canada Goose stock:
Metric | Value |
---|---|
P/E Ratio | 29.5x |
Forward P/E Ratio | 18.2x |
PEG Ratio | 1.15x |
Price/Sales | 6.3x |
Price/Book | 12.9x |
Dividend Yield | 0% |
With a high valuation multiples, investors are clearly pricing in strong continued growth from Canada Goose. The company does not currently pay a dividend, directing all free cash flow toward expansion.
Is Canada Goose a good long-term investment?
Canada Goose presents an interesting long-term investment case. On the positive side:
- Strong consumer brand with pricing power and luxurious reputation
- Leadership position in premium outerwear category
- Multi-year growth runway as it continues expanding globally
- Highly profitable business model with expanding margins
- Opportunities to expand into new products, categories, and collaborations
The main risks to consider include:
- Premium valuation that bakes in high growth expectations
- Success is dependent on brand image which could change
- Most sales concentrated in cold weather product segments
- Long-term impact of luxury goods shifts from COVID is uncertain
Overall, Canada Goose looks to have a solid long-term outlook. But the stock may be prone to volatility based on challenging retail conditions or any threats to brand cachet. Investors excited about the luxury and outerwear opportunity could do well buying shares during dips or periods of underperformance.
Conclusion
In summary, Canada Goose is a publicly traded company on both the Toronto Stock Exchange and New York Stock Exchange. It has experienced tremendous growth since its IPO in 2017 driven by strong consumer demand for its premium outerwear. Canada Goose still has substantial room for continued expansion both geographically and into new products and collaborations. For investors, Canada Goose offers an interesting luxury apparel growth story. But the valuation today is high, baking in many years of expected growth. Long-term investors could benefit by buying shares selectively when the stock price declines from peak valuations.